Grow From Here

Guest Post by Nancy Baye

‘Reduce, Reuse, and Recycle’ is not just a motto: it’s a mindset.

I find waste offensive.  If it’s not needed, don’t use it.  If it is needed, then reuse and recycle it.  Go ahead and laugh at the re-used zip-lock bags and gently-damp paper towels that hang drying in my dish-rack; just know that this attitude is prevalent among today’s consumers.

Is it on the mind of your franchise operations?

On a recent visit to McDonald’s for a (relatively healthy) chicken wrap, I specifically stated that I did not need a bag.  My comment was noted by the girl who took my order and my money, then went to retrieve the order.  Another staffer (highly bored) ventured to the counter and glanced at my order.  He automatically reached for a paper bag and shook it open.  I tried to stop him, but he was quick as a bullet.  When I re-iterated my request he shrugged his shoulders, indifferently crumpled the bag and – to my horror –threw it into the garbage.

I explained to the blemished offender my attempt to avoid waste, adding that had I used a bag, (forgive me old growth forests) it would have been respectfully recycled.  Again, he shrugged his shoulders, and then walked away.  

My request was dismissed and I felt dismissed.

What recourse do I have?  What is the likelihood of the burger jockey reporting my feedback?  About two shoulder shrugs out of ten.

How do you, as a franchisor, keep up with consumers’ shifting mindsets and resultant requests?

Some encouraging examples to consider

• many grocery and liquor stores now give away reusable bags (with logos smartly displayed) to brace customers for the upcoming ban on plastic bags
• ‘Mom & Pop shops’ seem sensitive to their customers needs, perhaps because the owner is on the front lines to witness those glances of approval / disapproval

It’s too late for that McDonalds’ bag which now faces years in a landfill.  But my tale is not simply about a wasted bag: it’s about a principle. 

Today’s consumers want to be as socially and environmentally responsible as possible.   Can you afford to overlook this way of thinking?

How do you get feedback from the front line:  your consumers?

Best Practices, Focus, Franchise, Tips consumer's shifting mindset, franchise operations, franchisor, Nancy Baye, recycle, socially and environmentally responsible

Selling a franchise is – by definition – selling a system of operations, sales, production and delivery that will make money for the buyer.

One often unspoken assumption by franchisees is that you will provide them with ‘best practices’ and will continue to provide them with improvements to procedures and operations.

The franchisee expects to acquire a system of operations, sales, production and delivery that will generate profits; and they expect it to be continually updated.

A big part of the value of a franchise is having a group of intelligent invested people who are constantly trying out new things and learning from their experiences.  Since the learning that arises from this is carried out in disparate locations, the challenge becomes how the franchisor can gather, collate, distribute and continually update these found improvements to all the franchisees.

Why this is so important

• When this does not happen, the learning process comes to a grinding halt and the newly acquired data is lost.
• But when it does happen, the competitive advantage of this franchise will go through the roof!

Sir Isaac Newton said:  “If I have seen further, it is by standing on the shoulders of giants.”  (Letter to Robert Hooke, 1675)   This quote speaks to any successful franchisor who learns from his franchisees.

Set up systems for people to:

• See what has been done before, what worked and what didn’t
• Easily track what they are trying, and filter results for fellow franchisees
• Easily generate graphs to see trends, leading indicators, etc.
• Learn from you about franchise-wide best practices that have been discovered
• Have a place for updated best practices, and a forum for questions and conversation

Distributing continual improvements further benefits you as it is proof of all the ongoing advancements, upgrades and value that you are providing.

It helps to justify your royalties even before the franchisee asks the question,“What have you done for me today?”

Best Practices, Business Growth, Communication, Focus, Franchise advertising, Best Practices, investors, marketing, product, selling franchises, strategy, support development

Many years ago, a highly astute man named Pareto, led a study which concluded that 80% of our success will arise from 20% of our efforts.  This ‘Pareto Principle’, also known as ‘The 80 / 20 Rule’ can easily be applied to an examination of priorities.

The 20% to focus on is that which will drive revenue.

One of the key challenges for any business owner is how to set priorities.  A glance at your listed ‘To Do’s’ will include many ‘Nice to Have’ items.  Yet you must distinguish between these lower priorities and those that need to top the list:  those that will spur profits.

There are many demands at any given time: from your franchisees, staff, your personal goals and business development advisors.  The secret is to know what drives your revenue, and to be ruthless about new ideas as they pertain to driving revenue.

What will drive franchise revenue?   Key areas to consider are:

1. Communication
2. Relationship Building with your Franchisees
3. Driving Sales

More specifically, items that often fall under each of these are:

Communication:

• your marketing and PR
• methods used to attract new franchisees
• tasks that aid in attracting customers to existing franchisees
• ways to keep franchisees excited, enthusiastic and involved

Relationships with franchisees:

• to make them aware of the value you provide them continually
• to help and support them in getting more sales
• to train and advise them on best practices
• to demonstrate how your training facilitates their increased profits

Driving sales:

• when franchisees make money and have a good profit margin, both them and you make increased earnings
• can be achieved through a combination of online marketing, development and implementation of effective marketing materials, the use of promotions and sales offers
• all begins with market research

Focus on what needs to be done with your existing revenue drivers, and as new ideas arise, be strict in assessing where they fall in regards to the 80/20 rule.  This simple principle will act as a powerful lens, narrowing your focus so you can strengthen the profitability of your franchise.

When is the last time you re-evaluated your priority list?

Best Practices, Business Growth, Communication, Focus, Marketing

Ever feel like you’re in business overload with a task list that just keeps growing?

I’ve been in that situation recently – lots of good things happening, but the list gets longer every day rather than shorter…  Pretty well everyone I talk with who runs a small-medium business is familiar with the feeling – as soon as you get the sales structures nailed, the project management systems need work.  Then you get those nailed, and the customer support processes need strengthening.  It feels a bit like the gopher bashing game - as a kid I used to go to a local fair where they had a game with multiple holes and gopher heads would keep popping up and people playing would try to bash the gophers (not live ones!) with a mallet.  Every time you got one, another would pop up. 

This is not a new problem, of course.  Solutions are popular; from Verne Harnish’s one page strategic plan (which I depend on heavily) to a variety of other management tools.  But it has been very present for me recently.  I’ve found a couple of things that help me keep a handle on what needs to happen when:

• Lists.  I love lists; writing stuff down gets it out of my head AND gives me a nice visual indicator of progress as I can check items off.
• Delegation.  Once I’ve spent the time to write something up, then maybe I can hand it off.  Otherwise it stays as mine to do!  I did a list this morning and had about 10 different task areas that I can hand off, some ongoing and some one-time tasks.  It’s great to see that written down so I can decide what skills are needed and who can do what (instead of me).
• The Most Important Thing.  I’m a big fan of the square with urgent and important where the goal is to work most of the time on stuff that is important but not urgent, so that nothing makes its way through to the important AND urgent slot.
• Blocking Time.  I recently blocked off two full days for strategic planning.  It was very hard to free up that time, but the results have been spectacular so far (and make determining the Most Important Things much easier on a day to day basis).

None of these are rocket science, but I find that when I get busy or frazzled, going back to the basics makes a big difference.  It lets me focus and make sure the business is moving forward on a trajectory and that I’m not spinning in circles or just reacting to what comes up.  And for today, that’s my most important thing!

Best Practices, Business Growth, Focus

Martha Matilda Harper and the Harper Method – 1888

Martha Matilda Harper was born in Ontario.  She emigrated to New York where, in 1888, she founded the first retail franchise (also called a business format franchise).  She first established one salon and built up its clientele and reputation, then expanded to Buffalo, across New York, to Detroit, Michigan and then to Chicago in time for the World Fair in 1893.   She eventually developed a network of 500 salons across America, Europe, Central America and Asia.  The first shop owners were all poor or working class women.  Harper created the Harper Method and training centres and created a formula for business success that considered location, product lines and services, marketing and the customer experience.  Nothing was left to chance, so that customers got a predictable experience in any Harper salon around the world.  As her biographer, Jane Plitt (author of Martha Matilda Harper and the American Dream) says, ‘She created a team of loyal, ambitious women who followered her precept and business practices as if they were scriptures, and whome she and customers worldwide trusted to carry on the Harper tradition withconsistency and finesse”.

Her ‘Secret Sauce’

The three things that distinguished Martha Matilda Harper and made her frachise operations a huge success are still key to franchises and their business success today.

1. Creative and distinctive Marketing
   When she first began, Martha Matilda Harper used creative advertising and marketing techniques, including offering her salon as a reception room for the next-door piano teacher (one way to get customers in the door!), setting up child care rooms in her salons to build a future generation of customers, and getting the patronage of high profile women like Mrs. Coolidge and Susan B Anthony.
2. Customer Experience
   Martha Matilda Harper focused on making the experience of being in her salons a delight for her customers.  She developed the first reclining shampoo chair (so customers would not get the soap in their eyes), charmed everyone who entered, and, through her training programs, ensured that new associates would not graduate from her training programs until they could make the customer smile.
3. Consistency and Training
   Martha Matilda Harper set up training schools across Canada and the United States to ensure that the quality and training were consistent.  She closely monitored the quality and practices of the franchise locations and sent regular newletters to her many franchisees.

Historical Considerations

As I was researching the story of Martha Matilda Harper, and the first franchise, I came across a number of sites that referred to Albert Singer, founder of the Singer Sewing Machine Company, as the founder of the first franchise system.  The key difference seems to be that Singer’s products were sold by salaried employees, rather than by franchisees, as in Martha Matilda Harper’s case.  She installed working-class women like herself in salons exactly like hers, trained them, inspected them, and shared the benefits of her marketing and advertising campagains with them.  They owned the salons so long as they bought Harper and followed Martha’s rules and the Harper Method.

Other Resources:

• http://www.winningthevote.org/MMHarper.html
• http://www.greatwomen.org/women.php?action=viewone&id=203
• http://www.marthamatildaharper.org/

Business Growth, Focus, Franchise, Franchisor Spotlight

Execution & Advisors

I value advisors and mentors very highly and believe in using other people’s experience to fast-track my company’s growth.  I have always worked with a variety of mentors and specialists, and even before starting Open Box, was getting advice from a very experienced businessperson that I have a lot of respect for.  He reviewed our financial plans, asked questions about the assumptions, and had great suggestions about risk management, getting clients and what to watch out for.

My current Advisory Board is invaluable

We have a monthly phone meeting, and prior to that I write an update on where we are at with our strategic goals, how the financials are doing, and any questions that I want to discuss with them, as well as whatever background they need to give me the best advice possible.  Just writing up this information on a monthly basis makes me stop and take stock of how the company is doing and what changes have happened and what’s really important.
Then, during the conversations, they come up with creative ideas and suggestions, as well as asking questions from their experience that I might not have thought of.  They remind me of progress being made, and follow up on what I said I would do in the previous conversation.  They remind me to look after myself as well as my business, and when I have a hard decision, they suggest alternatives and things to consider, but always remind me that part of being an entrepreneur is making the hard choices and that in the end it’s my business.  I love working with them, and with other mentors that I have had over the years.

Time for Execution and Implementation

At the same time, towards the end of last year, I found myself in the interesting position of having too many mentors/advisors (not just my advisory board, but other experienced people that I respect highly who were available to bounce ideas with & get advice from).  I found that I was spending too much time talking with a variety of wonderful people, when I knew what needed doing and really needed the time to implement.  There’s definitely something seductive about the brainstorming/idea sharing/gathering wisdom processes.  But it was important for me to recognize that it was time to put my head down and prioritize, plan, then implement the plans.  2009 is all about implementation for me.  I have pulled back from a number of my mentors, and am focussed on making the plans happen.  Lists and execution are the key, so I have pared down my advisors to that core Advisory Board and look forward to seeing what happens as I use the distilled wisdom from all those great conversations.

Signs that it is time to shift

What helped me recognize that it was time to make a shift?

• My to do list was growing (with no inessential or busywork items).
• I started scheduling meetings with advisors further apart because I needed time to execute on plans.
• I didn’t have a lot of key questions that were pressing at me.
• I had the opportunity to participate in a business growth workshop and decided the time was better spent doing.
• I knew exactly what to do next, and had good risk management plans organized.
• I wasn’t spending enough time selling (and yes, I believe that this should be 30-60% of the time allocation of the average entrepreneur).
• I was starting to talk too much about long term plans because the short term was crystal clear.

The Joy of Execution

Since the new year started, I have been focussed on execution.  So far, the results are stellar.  My to-do list isn’t getting shorter, but some of the key items are progressing well.  I know that I’m focussed where I need to be.  I’m able to enjoy crossing items off my list every day and have a good sense of the overall strategy for the company for this quarter.  Now I just need to make sure I notice when I need to go back to them for more  – but fortunately I still have my regular monthly advisory calls and now I’m really looking forward to them again.

Best Practices, Business Growth, Focus

Starting a new blog is fitting as the new year starts.  Many of our clients have said that the information we provide is extremely useful because our company sits at the intersection of business & technology.  We focus on helping franchises increase efficiences and strengthen their systems.  This can sound a little dull, but it’s actually very exciting seeing the difference that improved operations can make for a growing franchise.

As I’m sure is true for all business owners, each new year brings many many lessons in what really matters to grow your business.  This past year (2008) has been a very full one for Open Box and for me personally. 

Highlights from 2008

We have continued to add to our roster of clients, with a particular focus on clients who have franchised or who are interested in building a company that is franchisable.

As well, our company went the investment raising route for VitalityLink and went through a major expansion and then a contraction to get us back to a lean, mean team that can deliver the best results for our clients.

I participated in Acetech’s Growth Strategy program, which was a like an ‘on the job MBA’ – designed to take best practices and teach and implement them in succesful growing tech companies here in Vancouver.  Great learning, incredible mentoring and a good way to build relationships and share with other CEOs about the challenges we face together.

The Corner where Business & Technology Meet for Growth

I decided to start the Grow from Here as a way of sharing our experiences and learning with franchisors and business owners.  The corner where business & technology come together is one where there are lots of small things that can be done to improve your success, and I hope to share those I know with you, and keep adding to my own toolkit.  This blog is for best practices in business growth, learning from one another and sharing what works (and, hopefully, what doesn’t!).

Looking forward – Focus is the Key for 2009

One of the most important things I continue to work on is picking the Big Goal (BHAG).  Probably like many entrepreneurs, Jeff & I are always excited by the new idea, opportunity, adventure.  There’s a funny post about entrepreneurs and our attraction to the Great Shiny New Thing at onstartups.com.  My lesson for this year has been to focus, stay on course, and let go of some of the great exciting ideas that come on an ongoing basis.  As my Board of Advisors like to say, ‘what’s your core business’?  Keeping that question front and centre has led me to some hard choices and continues to be a challenge, but it is one that I needed to confront in order to grow our company.  Keeping focussed is the one biggest things I will do in the coming year.  How about you – what has been your one takeaway from the last year?  What would you like to share with other business owners and entrepreneurs?

Best Practices, Business Growth, Focus, Franchise, Technology